An Evaluation of the Performance of Three Different Mutual Funds
Table of content
Content Page 1. Summary 2 2. Five year return summary of the mutual funds 2 3. Performance analysis of the funds
RHB 3
CIMB 7
PUBLIC 16 4. Conclusion and recommendation 18 5. References 19
Summary
The report of performance analysis consists of analysis of three mutual funds in Malaysia. These are RHB, CIMB, and PUBLIC Mutual. In order to analyse their performance, the return in terms of percentage (%) of 4 different funds were analysed. The four different funds are equity fund, balance fund, bond fund and money market fund. After the analysis done, conclusion and recommendation are provided.
| 5 Years | Fund (%) | RHB | CIMB | Public | Equity | 8.21 | 9.23 | 8.01 | Balanced | 8.83 | 8.98 | 8.37 | Bond | 7.08 | 8.01 | 7.38 | Money market | 2.31 | 2.67 | 2.44 |
The equity, balanced, bond and money market fund return in % for the last five years of the three banks are shown above. The evaluation of the performance of the three banks will be done based on the following criteria: 1. Minimum investment amount 2. Investment objective 3. The names and experience of the fund managers 4. Historical record of the past performances 5. The exposure to various types of risks 6. The services offered by the MF (e.g. internet account, account checking, etc.) 7. The fees incurred by the MF (e.g. management, sales and annual fees) 8. The net asset value (NAV) 9. The growth of the fund 10. differences in product structure/design or trading mechanics. 11. Holding period return (HPR) over multiple horizons (from income and capital gain yield) 12. risk/volatility of prices/returns over multiple horizons 13. management and other fees charged 14. returns after adjusting for fees 15. Sharpe’s measure, geometric average return and other measures if feasible 16. performance during bull
Content Page 1. Summary 2 2. Five year return summary of the mutual funds 2 3. Performance analysis of the funds
RHB 3
CIMB 7
PUBLIC 16 4. Conclusion and recommendation 18 5. References 19
Summary
The report of performance analysis consists of analysis of three mutual funds in Malaysia. These are RHB, CIMB, and PUBLIC Mutual. In order to analyse their performance, the return in terms of percentage (%) of 4 different funds were analysed. The four different funds are equity fund, balance fund, bond fund and money market fund. After the analysis done, conclusion and recommendation are provided.
| 5 Years | Fund (%) | RHB | CIMB | Public | Equity | 8.21 | 9.23 | 8.01 | Balanced | 8.83 | 8.98 | 8.37 | Bond | 7.08 | 8.01 | 7.38 | Money market | 2.31 | 2.67 | 2.44 |
The equity, balanced, bond and money market fund return in % for the last five years of the three banks are shown above. The evaluation of the performance of the three banks will be done based on the following criteria: 1. Minimum investment amount 2. Investment objective 3. The names and experience of the fund managers 4. Historical record of the past performances 5. The exposure to various types of risks 6. The services offered by the MF (e.g. internet account, account checking, etc.) 7. The fees incurred by the MF (e.g. management, sales and annual fees) 8. The net asset value (NAV) 9. The growth of the fund 10. differences in product structure/design or trading mechanics. 11. Holding period return (HPR) over multiple horizons (from income and capital gain yield) 12. risk/volatility of prices/returns over multiple horizons 13. management and other fees charged 14. returns after adjusting for fees 15. Sharpe’s measure, geometric average return and other measures if feasible 16. performance during bull
References: Elton, Edwin, Martin Gruber, Yoel Krasny, and Sadi Ozelge, 2007, “The Effect of Frequency of Holding Data on Conclusions about Mutual Fund Management Behavior,” forthcoming Journal of Financial and Quantitative Analysis. Jain, Prem and Joanna Wu, 2000, “Truth in Mutual Fund Advertising: Evidence on Future Performance and Fund Flows,” Journal of Finance 55, 937-958. Kallberg, Jerry, Crocker Liu, and Charles Trzcinka, 2000, “The Value Added from Investment Managers: An Examination of Funds of REITs,” Journal of Financial and Quantitative Analysis 35, 387-408.